New Opportunities for Pipeline Contractors in the Energy Transition Era

Renzo Chirulli, Applications Specialist Pipeline, and René Albert, Senior Applications Engineer Specialty Excavation, Vermeer EMEA

The world is changing. Actually, it never stopped changing. The pipeline construction industry is changing too, and the main driver is the transition process towards a climateneutral human society.

Intelligence is the ability to adapt to change and intelligence must drive strategies and actions to adapt to a changing world. The so-called clean energy transition is leading to a profound change in the way we transport and use energy. Decarbonisation, renewables, e-fuels, hydrogen, nuclear fusion and methanol economy are just some of the new keywords replacing fossil fuels, which has driven the worldwide economy and geopolitics for decades.

The COVID-19 pandemic is acting as a dramatic accelerator for this transition process. The official strategy of the European Union (EU)*, to be climate neutral by 2050, offers an interesting and detailed overview of the processes which are driving the change in Europe, making the European Union the leading block in the fight against climate change. The strongest statement in the EU strategy is, “The status quo is not an option,” which results in seven main strategic building blocks, where many opportunities for pipeline contractors can be identified.

EU import of fossil fuels will drop by 70% by 2050 (from EUR 266B to 80B); its dependency on energy imports will go from 55% in 2018 to 20% in 2050. Electricity production will increase by a factor of 2.5 and more than 80% of electricity will come from renewable energy sources. The deployment of renewables and the use of electricity to fully decarbonise Europe’s energy supply already calls for the installation of a massive quantity of high/medium voltage power cables. Pipeline contractors potentially have the technical capability and expertise to include this segment of activity in their portfolio - and Vermeer can be an ideal partner to make this process effective.

Another great opportunity arises from the need to develop an adequate smart network infrastructure and interconnections, and specifically pipelines for hydrogen (green and blue H). Biomass can directly supply heat. It can be transformed into biofuels and biogas and, when cleaned, can be transported through the gas grid substituting natural gas. This results in the need to keep the existing natural gas infrastructure and expand it. And finally, carbon capture and storage (CCS) is still necessary, especially in energy-intensive industries and in the transitional phase for the production of carbon-free hydrogen (blue hydrogen). CCS requires new infrastructure to transport and store carbon dioxide.

As a leading machinery manufacturer, Vermeer offers a wide and optimised range of machines that cover most of the applications related to the strategy to become climate neutral. Biomass production, right-of-way clearing, levelling, mechanised trenching and trenchless technologies are some of the applications where Vermeer machines can be effectively used, helping pipeline contractors to diversify their applications portfolio.

We are confident that the future is full of new opportunities!

* Communication from the Commission to the European Parliament, The European Council, The Council, The European Economic and Social Committee, The Committee of Regions and the European Investment Bank, Brussels, Nov. 28, 2018 - COM(2018) 773 final.